Refund of Title IV Aid Policy
In 1998, a Federal Public Law (#105-244) went into effect that impacts all federal financial aid recipients who withdraw from their classes (this means dropping all the credit hours you enrolled for).
This law states that if a federal financial aid recipient withdraws from all classes prior to reaching the 60% point of the semester, some (or even all) of the federal (Title IV) grant and loan assistance credited to the student’s LU account must be repaid, according to the date of withdrawal and the student’s last date of class attendance.
According to the exact number of calendar days that have elapsed from the first day of classes until the day you withdraw or your last day of class attendance (whichever is earlier), you’re considered to have ‘earned’ a portion of the total federal grant and loan aid that was credited to your LU account for the semester. The unearned portion of this assistance must be repaid.
You are responsible for repaying LU the unearned portion of the grant assistance you received. LU will have already returned this amount to the US Treasury. The unearned portion of the loan assistance you received will be repaid in accordance with the terms of your promissory note.
The Department of Student Financial Assistance notifies you by mail of the amount you’re required to repay. You’ll then have 30 days to either remit the full amount or make satisfactory arrangements for repayment. Payment should be submitted to the Office of Student Accounts (105R Young Hall). Failure to repay the amount you owe in a timely manner will result in a financial hold being placed against your LU records.
Calculation of the unearned portion of your federal financial aid is a separate process from any refund of tuition, housing, or meal plan charges provided for in accordance with the policies published in the University’s Bulletin.
Important! Please realize that you’re not eligible to receive (or have received) any financial aid at all, if you:
1) Withdraw during the first five days of classes for a semester (the 100% tuition and fee refund period); or
2) Have no record of class attendance or class participation for a semester; or
3) Are approved for a 100% reversal of your tuition and fee charges after the beginning of a semester.
In these instances, all grant, loan, and scholarship assistance that were credited to your LU account will be reversed, and must immediately be repaid to